NDIC liquidates 89 failed MFBs, PMBs after asset transfer deal

The Nigeria Deposit Insurance Corporation (NDIC) has begun formal proceedings to conclude the liquidation of 89 closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs), following their resolution through the Purchase and Assumption (P&A) framework.

The affected institutions were among 179 MFBs and four PMBs whose operating licences were withdrawn by the Central Bank of Nigeria (CBN) on May 22 and 23, 2023, as part of broader reforms to clean up the financial services sector and address weak balance sheets.

Under the resolution structure, 89 eligible successor institutions were licensed by the CBN to acquire the assets and liabilities of the defunct banks. The acquiring entities have since resumed operations under new names, ensuring continuity of customer accounts and mitigating systemic disruption.

With the transition phase completed, the NDIC—acting as statutory liquidator—has now moved to the final legal stage of winding down the affected institutions. This includes filing applications before various divisions of the Federal High Court to secure dissolution orders and formally discharge the Corporation from its liquidation mandate.

The development represents a significant step in Nigeria’s evolving bank resolution architecture, which increasingly prioritises structured interventions over disorderly collapses. It also highlights the growing reliance on Purchase and Assumption transactions as a tool to protect depositors, preserve financial stability, and ensure an orderly exit of failed institutions from the banking system.